Trinity Biotech up on Q1 profit rise
Shares of Irish pharmaceutical company Trinity Biotech plc (Nasdaq: TRIB) posted a new 52-week high this morning on news of an increase in first-quarter revenue and profit.
Revenues for the quarter ended March 31 were $36.7 million, an increase of 48.5% from $24.7 million a year earlier, the company said before the market open. The quarterly profit was $2.9 million, up 135% from $1.24 million in the first quarter of 2006. Earnings per share were $0.15, above Wall Street’s forecast of $0.10 per share. Earnings were $0.08 per share in the first three months of 2006.
“Quarter 1 has been a very strong quarter for Trinity,” CFO Rory Nealon said. “Our operating margin before share option expense has increased from 7.9% of revenues in the same period last year to 10.0% in the current quarter.”
Nealon also said that the acquisition of French diagnostics company bioMerieux, completed in June 2006, is proceeding well, with all sales and marketing and service activities now fully transferred to Trinity. He said he expects Trinity to manufacture its first batch of bioMerieux products in the third quarter.
Looking ahead, CEO Ronan O’Coaimh said prospects for 2007 are “excellent” due to expected strong sales of Trinity Biotech’s HIV testing product Uni-Gold HIV. “In the USA Uni-Gold HIV continues to penetrate the public health, hospital and physicians office segment of the market,” O’Coaimh said. “We are particularly pleased with our performance and remain confident that Uni-Gold will continue to take market share from key competitors.”
Trinity Biotech is participating in the Bush administration’s President's Emergency Plan for AIDS Relief (PEPFAR), which provides funds to fifteen countries affected by the HIV/AIDS pandemic. The company said hopes its participation in the program will drive sales of Uni-Gold in Africa.
At 12:44 p.m. ET shares were up $0.60, or 6.11%, to $10.48, after establishing a new 52-week high of $10.50. The previous high was $10.45, set on Feb. 20. The 52-week low of $7.01 was set on July 19, 2006.
